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Apples and oranges. Ordinary income is not capital gains. If you buy your first stock, you are using money that was already taxed at the ordinary income tax rat
by j09jfdasj2 12y ago
Apples and oranges. Ordinary income is not capital gains. If you buy your first stock, you are using money that was already taxed at the ordinary income tax rate.
- adaml_623 12y agoYou are forgetting that trust funds step around the income tax 'problem'
- rhino369 12y agoI don't get why it is apples and oranges. Why is it fair to take 45% of the income I toil for, but it's OUTRAGEOUS to take 25% of someone's passive investment. >If you buy your first stock, you are using money that was already taxed at the ordinary income tax rate. Which is why we only tax the amount gained. I don't see why it should matter if the gain is an investment or working. And a lot of my salary is a return on an investment that I made into my own education and training. IMO, captial gains should be adjusted for inflation* and then taxed like any other income. *you really do a have to adjust for inflation. Right now inflated gains (which aren't real) are taxed as if they are.